Have A Look @ Latest Mnc Payslip - Doc Download

Hello friends,

Here is a payslip attached from one of the MNCs. Please take a look at it.

If you would like more information, kindly email me, friends.

Regards,
Arunstalin.K

[IMG]https://www.citehr.com/misc.php?do=email_dev&email=YXJ1bnN0YWxpbk BnbWFpbC5jb20=[/IMG]

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Hi,

Recently, I have been assigned the task of designing payrolls for the employees of my company. I would be grateful to you if you could help me with details regarding the salary breakup. Specifically, I need information on how much percentage of the salary is contributed towards Basic, DA, HRA, CCA, LTA, Medical, etc., focusing on the rules applicable in Hyderabad city. I also need guidance based on salaries starting from Rs 5000 per month so that there can be maximum savings towards tax.

I am hoping for quick replies.

Thank you!

Hi Sonam,

Salary break-up:

- Employee contributions
- Employer contributions

From the gross salary, Basic+DA can be 25-35% as per company policies. From the Basic+DA:

- HRA is 50% for metropolitan cities and 40% for non-metros
- Conveyance allowance is 800 per month. If above 800, it is taxable
- Medical allowance is 1250 per month. Above 1250 is taxable
- There can be other breakups such as Special allowance, Bonus, Incentive, etc., based on company norms.

Regarding deductions:

According to rules, if the employee's salary is more than 6500, PF has to be contributed. As you mentioned, 5000 rupees need not be considered if I'm not wrong. The employee has to contribute 12% of their Basic+DA. The employer also has to contribute 12%, and from this 12%, 8.33% goes to the employee's pension fund. Additionally, 0.5% is for EDLI charges, 1.1% for admin charges, and 0.1% for inspection charges. The mentioned three are employer's contributions. There are other deductions such as TDS, Professional tax (PT).

There are three types of pension plans:

- Superannuation pension
- Retirement pension
- Short service pension

Hope this info helps you. I'm not aware of Hyderabad state rules. If you have any doubts regarding this, ask me.

Regards,
ArunStalin.K

One of my friends started a new IT company in Hyderabad in June 2008. He is going to hire most of the professionals by paying more than 12,000/- PM from the outside market.

I came to know that PF need NOT be deducted for anyone until the company has 5 years of service. Is it correct?

I also came to know that PT is also not applicable as his total headcount is less than 100. Is it correct?

Are there any effects if the basic is 6000/- PM for 1-year exp, 8000/- PM for 2-year exp, and 10,000/- PM for a 3-year exp resource?

Please help me to help my friend.

Regards,
Mohan

Hi Maha,

What do you mean by an attractive template? What are you expecting regarding the salary breakup? Please make it clear.

Hi Arulstalin,

I am also in an MNC, and it is a startup company. I need to design a payslip for our employees. Hence, I am requesting an attractive template. Please share if you have any good formats.

Thanks and Regards,
Maha

Hey, I think the slip is a little plain. I wish it was a bit more compressed and had the organization's logo in the background. If you're interested, I can send you mine. Please note that mine is in Kenyan Shillings but very pretty if you understand it.

Kabuga

Hi Maha,

I'm also in the process of preparing payslips. I have collected many of my friends' payslips who are working in MNCs. How about being in an MNC, still don't they have any process for payslips? Where are you working right now? Are you aware of PF procedures? Have you collected any documents regarding PF? I'm currently working in Chennai. If you are interested in sharing some details, please do so. Looking forward to your reply.

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Every company's payslip will have a logo. The payslip I have attached has had the logo removed to maintain confidentiality. Anyway, please send me your payslip so that we can discuss various matters regarding the payslips. If it needs to be in a compressed format, how should it be? Please explain.

Employers' contributions to the Provident Fund and Gratuity Fund can be part of the Cost to Company (CTC). My employer is including Gratuity contribution at 4.5% of the basic salary and their contribution to PF at 12% of the basic salary as part of CTC. Is this the correct practice?

Regarding PF employer's contribution can be reflected in the payslip. In employer contribution, 8.33% goes to pension. Regarding gratuity, I'm not sure about it. Can anyone help with this, friends?

Thanks for your useful information.

Regarding this EDLI, I have a small doubt. Should all employees come under EDLI? If they come under EDLI, shouldn't they contribute? Please clarify this for me.

Hey Arun,

Just click on the EDLI link, you'll get the whole details. It'll give you more clarity on it.

Vivek,

Thank you for your kind correction. I did not mention that. Actually, there is a scheme in the Employees' Provident Fund Organisation, hereafter referred to as EPFO, called VPF, i.e., Voluntary Provident Fund. In this scheme, an employee can contribute more than 12% of their maximum contribution. As for the employer, the maximum contribution is limited to 12%.

If there are any further corrections needed regarding this, please feel free to share your valuable insights, friends.

Goodbye.

Hi Neetu,

Could you please state clearly what your problem is? Have you been in the notice period or what?

Salary deductions consist of:
- Provident Fund
- Professional Tax
- Income Tax
- Transportation (if provided)
- Salary Advance (if taken)

If anyone has more ideas, please kindly let me know. Thank you.

Dear friends,

I have attached another MNC payslip in the next post. Please take a look at it and share your valuable comments.

Thank you.

Hi Maha,

I'm also in the process of preparing payslips. I have collected many of my friends' payslips who are working in MNCs. How come, even being an MNC, they still don't have any process for payslips? Where are you currently working? Are you aware of PF procedures? Have you collected any documents regarding PF? I'm currently working in Chennai. If you are interested in sharing some details, please do so. I look forward to your reply.

According to my knowledge, the PF Calculation is as follows:

Employee Contribution: 12% on Basic+DA
Employer Contribution: 12%
Employer Contribution breakdown:
- 8.33% (Pension)
- 3.67% (PF)
Total PF: 15.67%
Employee Contribution for PF: 12%
Employer Contribution for PF: 3.67%
Other Charges: 1.61%
- Admin Charges: 1.10% on Gross
- PF Charges: 0.01% on Gross
- EDLIS: 0.5% on Gross

With Regards,
Rupa

Thank you, Rupa, for the information. I have also mentioned the same explanation when the thread was started. What about EDLI and PT? Should all employees get deducted by professional tax and EDLI? Please, can anyone clear this question? Expecting your answers at the earliest!

Thank you in advance!

Superannuation Pension

Superannuation pension is granted to an employee who is retired upon attaining the age of compulsory retirement. The age of compulsory retirement for all employees was 55 years before 1.12.1962. Class-IV employees superannuated at the age of 60 years. With effect from 1.12.1962, the superannuation age of Group 'A', Group 'B', and Group 'C' was raised from 55 years to 58 years. The age of superannuation in respect of all employees is 60 years w.e.f. 13.05.1998.

Retiring Pension

Retiring pension consists of various cases as mentioned below:

1. Retiring Pension (age-based)
2. Retiring pension (service-based)
3. Voluntary retirement (20 years of service)
4. Retirement on being declared surplus

A. Retiring Pension (age-based) is of two types, namely, Premature (age-based) and Voluntary retirement (age-based). The rules governing the grant of the same are as follows:

Premature Retirement (Age-Based):

The appropriate authority shall have the absolute right to retire an employee in the public interest after he has attained the age of 50 years by giving him notice of not less than 3 months or three months' pay & allowances in lieu of such notice if he is in Group 'A' or Group 'B' service or post and had entered Govt. service before attaining the age of 35 years, and in any other case after he has attained the age of 55 years.

If anyone has more valid information, please provide.

Thanks in advance.

Regarding salary deductions for a software company, do we have to follow any rules in pension schemes? If yes, then please let anyone know about that. How should the income tax be deducted? Does the employer have to do it for the employee in his salary breakup?

Help, friends!! Thanks in advance...!

Hi Arun,

Our company is just 6 months old, and key players have recently joined. I am heading the HR & Admin department. We have already applied for the PF code and received it. Currently, I am working on obtaining the ESI code for our company.

We specialize in manufacturing composite structural core materials and hold a monopoly in the market. We supply our products to the wind sector. Our location is in Irungattukottai SIPCOT Industrial Park, situated behind Hyundai Motors. We are one of the companies in the park but do not supply to Hyundai. Most of the companies in the park are Hyundai suppliers, making it challenging for me to network with the HR professionals there.

Could you share your details and whereabouts with me? Let's stay in touch.

Best regards,
MAHA

Hi Arun,

Thank you for the information provided by you. Could you please provide information regarding the employer contribution and employee contribution towards the PF (I mean in % or in figures)?

Thanks in advance.

Dear Maha,

There are lots of rules in PF. PF does not only deduct the amount of 12% from both sides, and ESI does not only deduct 4.75% and 1.75%. You have to take all accounts into consideration before deducting these amounts. If you need this, you can email me at [Login to view] or reach me at 09438044166.

Regards,
Sangram Baral

Dear All,

I am an MD doctor in Ayurveda with good clinical experience. Currently, I am pursuing a PGDBA from Symbiosis distance learning with a specialization in HR. I am eager to know the areas and sectors where I can effectively utilize both of my qualifications.

Looking forward to your response.

Regards,
Dr. Vijay Seth

Hi Suji,

Both employer and employee contributions are 12% each. From the employer's contribution of 12%, 8.33% goes towards pension plans. If an employee wants to voluntarily contribute more than 12%, they can do so using VPF, i.e., the Voluntary Provident Fund scheme. An employer can even contribute 100% of their income to PF. For the employer, it is sufficient to contribute a maximum of 12%.

Hope this information helps. Do you have any more queries, Suji?

Stalin...
Rs 6500/- per month is the upper limit. Up to 6500 per month, PF is mandatory; however, above 6500 per month, it's optional!

Cheers.

Hi Arun,

Just saw your reply to Sonam regarding the payslip structure. Your details relating to pay details were really helpful. But a small correction to this: If an employee's basic + DA pay is less than or equal to Rs. 6500, then PF is mandatory; otherwise, it is voluntary. I hope I am correct as I have just dealt with PF for my office.

Regards,
Nithya

Hi Nithya,

Thank you for this information; it was really helpful. I am also new to understanding salary breakup and PF formalities. Could you explain what forms need to be submitted for opening a PF registration number in my office? I work in a software company in Chennai as an HR Manager.

In a previous post, bheshaz mentioned that PF is mandatory up to Rs. 6500, then it becomes optional. Is that correct, Nithya? Please clarify this for me as well.

Thanks in advance.

Does ESI need to be deducted from all employees in the office or only from a particular group of employees? Please explain this question as well.

Thanks in advance.

Dear Arun,

Thanks for sharing your salary slip. About other salary matters, but I doubt that you said above 6500, contribution is required and less, it's not required. Please review it again. As per my knowledge, up to 6500.00 Basic+DA, it's compulsory to remit PF, and in excess (i.e., on balance), it's not compulsory for the remittance.

Mr._______ said that PF contribution for the first 5 years is not compulsory. I think it's wrong. As per the new PF amendments, if an organization has 10 or more people working under one organization name in the last 240 days, then they are applicable as per the law. Please correct me if found wrong. Your advice is important for me and others.

Regards,
Arabindo Patro.

Hello Arabindo Patro,

Thank you for your response regarding my post. I would like to clarify if employees receiving a salary up to 6500 are required to deduct the PF. Please let me know about this.

Thanks in advance.

Hi friends,

For your reference, I have attached another MNC company payslip from last month. Please take a look at it and share your comments. Everyone is welcome to join the discussion. Feel free to post your valuable comments.

Hi Arun,

Your payslip format was good, but you need to add the Company logo with the Head Office Address. Here, I am working in Bangalore at a company in the Personnel Department, concerned with Payroll, Database, and issuing ID cards and visiting cards to employees. I am currently looking for a change. Could you please send me some resume formats?

Thank you.

Hi,

If Basic is more than 6500, there is no need to deduct PF. It's the employer's discretion to contribute, but there is no compulsion.

Regards,
Savithri

I have received the Reliance Payslip, which I am attaching herewith, collected from this site. Hope you can gain some insights from it.

Thank you.

Hi Arun,

Thanks for your reply. You can send the resume format to aminamisbah07@gmail.com. Before you send me the format, let me briefly explain my job profile.

Currently, I am working at CCIL as an HR Executive in the recruitment department. Initially, I was responsible for recruiting Marketing Executives (both DME & TME). Later, I was transferred to the personnel department where I manage a database of approximately 1,200 employees and handle the issuance of ID cards and visiting cards.

In our company, the salary processing is divided into three parts: Marketing, Back Office, and Clubs. I am in charge of handling the club's salary and also coordinate with Marketing and Back Office for salary matters. Additionally, I am involved in managing PF and ESI, although not extensively like filling the challans, etc. I also handle Performance Appraisals.

This summarizes my job profile. If possible, please provide me with your email address so I can contact you.

Best Regards,
Amina

Hi Arun,

I recently noticed this site and became aware of all the facilities provided there. Arun, I think you are well aware of all the HR policies. Shall I ask for your assistance in the future?

Hi Arun,

I heard that PF will be applicable to a company when its employee strength exceeds 20 in number, and PF will apply to those employees whose salary is less than Rs. 6500/-. If an employee receives a salary greater than Rs. 6500/-, PF may still be attributed, but this depends on the discretion of the employer as well as the employee.

One more thing I need clarification on is whether this Rs. 6500/- margin refers to the Basic salary or Gross Salary.

Regards